Business Daily from THE HINDU group of publications
Friday, Oct 09, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Friday, Oct 09, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Airlines Corporate - Corporate Disputes
Our Bureau Mumbai, Oct. 8 Bharat Petroleum Corporation (BPCL) has decided to take a tough stance against Kingfisher Airlines on non-payment of aviation turbine fuel dues totalling Rs 314 crore (including interest). On Thursday, BPCL’s counsel said in the Bombay High Court, “We have given them concessions, but now we need to see the colour of money.” His counterpart for Kingfisher said the company could pay Rs 10 crore a month as part of the squaring up process to which BPCL’s counsel retorted that the airline needed to cough up a “substantial amount”. Review offer: HC“They have the money to run Formula One... where is that money coming from when they don’t have money to pay us?” he said. The Court too asked Kingfisher to review the offer as the current proposal was way too low. However, the airline held that BPCL had also conducted a “breach of contract” as it did not honour the 90-day grace period granted to all airlines on the behest of the Government. “Instead they put us on cash-and-carry just a few minutes before planes were due to take off at various airports,” said its lawyer. BPCL’s counsel replied that even those concessions “have not been honoured”. The oil major has also filed a winding up petition in the Karnataka High Court against Kingfisher if it fails to make the payment. In this context, the airline’s lawyer said, “The inevitable effect will be winding up of the airline in case a compromise formula is not worked out.” The Court has adjourned the next hearing to October 15 as BPCL has asked Kingfisher to come back with a better offer. More Stories on : Airlines | Corporate Disputes | Petroleum | Bharat Petroleum Corporation Ltd
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